PETALUMA, CA--(Marketwired - May 15,
2014) - According to the American Small Business League, the United States Army
is refusing to release subcontracting reports on Science Applications
International Corporation (SAIC) under the Freedom of Information Act (FOIA).
The Army will not give any explanation for their refusal to provide the
documents. The reports could show that SAIC may be in violation of their
contracts with the Army and may have failed to comply with their subcontracting
The American Small Business League (ASBL)
has filed a case against the Army in Federal District Court in San Francisco
under the Freedom of Information Act. The case was filed after the Army refused
to comply with a FOIA request from the ASBL for the most recent subcontracting
reports for SAIC.
The ASBL believes the Army's refusal
to comply with their FOIA request could be an indication that the SAIC
subcontracting reports may contain fraudulent information relating to their
contracts with the Army.
The ASBL has won dozens of FOIA cases
against the Pentagon in the past forcing the release of thousands of pages of
government documents that exposed fraud and abuse in federal contracting
programs. This issue has been the subject of dozens of federal investigations.
The Office of Government
Accountability released Report 10-108 that stated, "By failing to hold firms
accountable, SBA and contracting agencies have sent a message to the
contracting community that there are no penalties or consequences for
Every year for the last nine years the
Office of Inspector General for the Small Business Administration has named the
diversion of federal small business contracts to corporate giants like SAIC to
be the number one management problem at the
A recent legal opinion by
Professor Charles Tiefer, one of the nation's leading experts on federal
contracting law, found small businesses have been fraudulently cheated out of
billions of dollars in federal contracts.
ASBL President Lloyd Chapman stated,
"The fact that the Pentagon has consistently refused to release small
business subcontracting data is a clear indication they are still trying to
hide the rampant fraud and abuse in contracting programs that have been
uncovered in dozens of federal investigations and reports in the mainstream
The ASBL expects to prevail in this
case since the Ninth Circuit Court of Appeals ruled in 1994 that subcontracting
reports are releasable under the Freedom of Information Act.
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